Ukraine annually loses about $1.5 billion of foreign exchange earnings due to the low level of development of the irrigation systems of arable land. This was stated by an analyst on issues of agrarian business of the European Bank for reconstruction and development Basil Gougere, UNIAN reports.
He noted that Ukraine is irrigated less than 1% of arable land, whereas, for example, in the USA – 5,5%, in France – about 5% of arable land.
“That means no irrigation for Ukraine? There is a simple economic indicator – how much of the gross production we do not produce because of lack of irrigation in our country. Today it is possible to roughly estimate 10 million tons of grain, which means about $1.5 billion in revenue that we lose every year. That’s $1.5 billion annual foreign exchange earnings to the economy of our country,” said Gouger.
According to him, for realization of full potential of irrigation in Ukraine (expanding irrigation to 1.5-2 million hectares of land) requires a $2-4 billion investment.
Gauger also noted that today there are three major factors that inhibit business investment in irrigation: access to efficient financing, uncertainty with the land question, the difficulties with physical access to the water.
Earlier it was reported that since the beginning of the 2017/2018 marketing year, Ukraine exported 16 million tons of grain.